Stock Analysis

MBRS Group AB (publ)'s (NGM:MBRS) recent kr8.4m market cap decline means a loss of kr130k for insiders who bought this year

Published
NGM:MBRS
Source: Shutterstock

Insiders who bought kr177k worth of MBRS Group AB (publ)'s (NGM:MBRS) stock at an average buy price of kr1.22 over the last year may be disappointed by the recent 37% decrease in the stock. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth kr48k, which is not what they expected.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for MBRS Group

The Last 12 Months Of Insider Transactions At MBRS Group

While there weren't any large insider transactions in the last twelve months, it's still worth looking at the trading.

In the last twelve months MBRS Group insiders were buying shares, but not selling. The average buy price was around kr1.22. I'd consider this a positive as it suggests insiders see value at around the current price, which is kr0.33. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NGM:MBRS Insider Trading Volume March 16th 2023

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that MBRS Group insiders own about kr1.6m worth of shares (which is 8.9% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The MBRS Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded MBRS Group shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more MBRS Group stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing MBRS Group. Our analysis shows 4 warning signs for MBRS Group (3 don't sit too well with us!) and we strongly recommend you look at these before investing.

Of course MBRS Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether MBRS Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis